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Glass v. Commissioner of Internal Revenue

ELR Citation: 37 ELR 20002
Nos. No. 06-1398, (6th Cir., 12/21/2006)

The court upheld a tax court's decision that taxpayers' conservation easements were qualified contributions under I.R.C. §170(h)(1). The Internal Revenue Service argued that the taxpayers were not entitled to deductions for the two easements because they did not qualify as "qualified conservation contributions" under the Internal Revenue Code. But the tax court disagreed, concluding that the taxpayers were entitled to deductions since the easements prohibit the taxpayers from using their retained rights in the encumbered property in a way that undermines the easements' conservation purpose of protecting a threatened natural habitat of wildlife and plants in perpetuity. Because the tax court correctly interpreted the applicable statutes and implementing regulations, its decision was affirmed.